The current business environment is dynamic, and competitive forces are on the rise every day; hence automation is in focus across enterprises. Automating processes and functions using various technologies in order to create operations excellence and innovation enablement is now a core driver of competitive advantage. This post explores the next phase of automation, digging into some of the cornerstone technologies underpinning this shift and highlighting new developments that are likely to shape its future, looking at non-traditional avenues it may open up, while also acknowledging challenges companies will need to overcome in order to apply the concept and benefit from what comes with it.
What Does the Current Landscape of Enterprise Automation Look Like?
As a result of the COVID-19 pandemic, many industries confronted potential problems never before posed to their operations: closed factories and national lockdowns. These left behind acute shortfalls in manpower and materials, resulting in hit after devastating hit to supply chains that sent production volumes tumbling. Yet, in the face of these challenges, automation technologies steadily became a life-saving support, protecting processes and workers’ health. In addition to that, the era of Industry 4.0 has ushered in an age where digital supply chains are transforming across a range of sectors.
As a result, this growing dependence on automation can be seen in the skyrocketing global industrial automation market as of 2022, worth $205.86 billion and set to reach $395.09 billion by 2029. The CAGR of 9.8% for the period 2022 to 2029 is not only a spectacular statistic but also fresh hope for anyone considering entering this lucrative field. Among the various regions, Europe stands out. As of 2021, its industrial automation market scale was $61.85 billion and it dominates worldwide progress. (Fortune Business Insights)
Some of the key players in this market currently are ABB Ltd., Rockwell Automation, and Honeywell International, developing new robotics applications for automation solutions. They enable new growth opportunities and are an important element in a larger digital transformation taking place across many vertical markets.
Technologies
Generative AI
This breakthrough technology is quite unique, it creates content dynamically and also automates responses with predictions. For example, AI-powered chatbots perform customer service tasks; content creation for marketing purposes; and predictive maintenance of machinery.
Robotic Process Automation (RPA) and Intelligent Process Automation (IPA)
RPA uses software “robots” to automate high-volume transactional data processing tasks, enabling humans to execute higher-value work. IPA goes beyond the traditional automation which includes its key ingredient: AI, making it a flexible and intelligent step in automating various operations.
Internet of Things (IoT)
IoT links devices for the purpose of collecting data and automating systems as a whole. For example, IoT sensors can monitor assets (e.g. energy usage), also trigger appropriate automated actions to be performed in response to events, and identify opportunities for resourcing optimization as well.
Low-Code/No-Code Platforms
Low-code/no-code platforms allow citizen developers to create and deploy automation without much verbose coding. This equalizes automation, making the businesses to build solutions more quickly for particular demands. Consider creating a basic workflow automation or an application designed for one of your departments, all with little to no code.
Trends
Rise of the Citizen Developer
Surging primarily due to the ease and availability of low-code/no-code platforms, we’ve entered an era in which citizen developers are becoming a more popular theme. Gartner also projects that as of 2024, low-code will be the approach used to code more than two-thirds (65%) of all application development functions. On top of that, 66% anticipate implementing four or more low-code platforms on a large- scale. This makes app development more democratic in practice, so tech-phobic staff can help with the software development processes without having to increase demand for IT departments.
Process Mining Becomes Mainstream
With organizational focus shifting increasingly towards processes, the demand for process mining is soaring. 93% of respondents, according to PwC, said that they would like to start using process mining at their companies. Using process mining performance to generate the information, businesses have better visualization and analysis of their processes, thus being able to understand exactly what is happening within departments. Today, process mining is at the threshold of becoming mainstream a part of strategy among enterprises.
Hyperautomation as a Service (HaaS)
HaaS makes it easier than ever to access these transformational automation tools. These platforms offer the full set of tools required for HaaS and RPA/IPA, process mining, AI/ML models, and decision engines on a cloud-based, pay-as-you-go (PAYG) model. That flexibility eliminates the need for large upfront investment barriers, opening hyperautomation to a much greater swath of businesses ranging from startups to leading enterprises.
Collaborative Robots (CoBots)
CoBots are entering the workforce, altering how humans work together with machines. The International Federation of Robotics (IFR) reports that we now have 99 cobots for every 10,000 human workers worldwide. Those numbers increase to 140 cobots per 10,000 workers in technology-forward countries like China and South Korea (800). CoBots help productivity by taking care of repetitive tasks and helping human workers at the same time to do other more strategic things.
Opportunities
Increased Efficiency and Productivity
Over 90% of employees say that automation solutions help improve their work which a recent Salesforce survey proves. This rings true as 85% said collaboration across teams had improved thanks to these tools. Additionally, almost 90% of people place their confidence in automation to eradicate slips and accelerate decision-making. Because employees can assign low-value, unproductive work to the automated systems and focus on other higher-advanced activities that drive innovation and growth.
Cost Reduction
It should not be understated how advantageous automation can become when it comes to cost savings. That is because 51% of IT leaders believe streamlining automation can result in a 10-50% cost reduction. Furthermore, according to WorkMarket, business executives also acknowledge a significant reduction in labor costs, and 31% direct this decrease towards process automation.
Enhanced Decision-Making
Automation supplies data and takeaways that departments can use in making faster, smarter decisions. Real-time data analysis and reporting enable leaders to track trends, measure performance, and react more promptly in a dynamic market environment—not only speeding up response time but also enabling them to plan their strategy more strategically and produce wiser business decisions.
Improved Customer Experience
CX is the #1 priority for organizations and automation helps improve customer interactions. An example of this can be seen in the increasing use of chatbots—with 64% of CX leaders saying they plan to invest more heavily into these solutions also. Surprisingly, 50% of customers say they would rather have engagement with AI chatbots, showing increasing acceptance and preference towards automated customer service solutions.
Challenges
Scale and Diversity of Applications
Organizations have complex and diverse enterprise systems, integrating many applications from multiple vendors. This is complex to integrate and automatically manage these different systems, forcing significant customization/integration. To get this app to work, developers need to figure out how the user experience meshes with other applications and data flowing from departmental sources.
Skill and Talent Gap
Enterprise automation encompasses a range of business areas including ML, AI, and process design for which you may need specific skills. Unfortunately, this is a known bottleneck as demand far exceeds the supply of skilled practitioners in these domains. For example, an IDC study found that up to 60%-80% of Asia-Pacific organizations face difficulties in recruiting key IT roles such as security analysts and specialists, developers or programmers, and data professionals.
Job Displacement Issues
There is a concern for unemployment and economic inequality due to the possibility that automation can displace a pile of jobs. Automation could displace as many as 400-800 million workers by the year 2030, comments a McKinsey report. To allay these fears, employers need to put more focus on workforce retraining and upskilling programs.
Data Security and Privacy
Increased use of automation in enterprises relies more and more on data, with the result that damage caused by breaches of and misuses of sensitive is now greater. As a result, a recent ThreatQuotient survey found that some 75% of IT leaders say cyber security automation is important—an increase from 68% just one year ago. If not administered properly, automated systems may be full of bug holes leading to potential loss of sensitive information and the risk of a massive hit on reputation.
Conclusion
Enterprise automation is no longer a luxury—to keep pace with today’s fast-moving business world, it’s a necessity. By leveraging emerging technologies like Gen AI, RPA, and IoT, companies can realize new efficiencies, lower costs, and even discover entire new business models. However, before one can fully leverage it, hurdles such as the complexities of integration, skills shortages, and data safety must all be bridged. Organizations that plan to strategically implement their automation solutions will be the best bets for enjoying superior business outcomes and long-term success.
Are you ready to put automation into your enterprise? Look no further. Trinus Corporation is a leading technology and service provider. With over two and a half decades of experience, we combine the best digital transformation solutions that are both data-driven and analytical in nature. We help our clients gain a competitive edge and deliver better business outcomes. Contact us and find out how we can help your enterprise thrive by maximizing efficiency!